Mexicans abroad sent a record US$ 28.7 billion in remittances during 2017

Mexicans abroad sent a record US$ 28.7 billion in remittances during 2017

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The depreciation of the Mexican peso against the dollar in 2017 as well as the rhetoric of the Trump administration encouraged Mexicans in the U.S. to send back home a greater amount of dollars. Last year, Mexicans abroad sent home a total of US$ 28.77 billion, a record high, according to Mexico´s Central Bank data.

In 2010 the remittances accounted US$ 21.3 billion, hence, in just 7 years, the amount has increased 35%.

The data shows remittances are the third place in foreign currency generator in Mexico, just behind the automotive industry and agri-food.

Economists say the increase in the amount sent to Mexico as remittances has to do with President Trump threat to tax them.

Remittances are not taxed in the U.S. because they are transfers of previously owned money rather than payments for goods or services, while Mexico does not tax remittances’ recipients unless the amount is too high.

Mexicans living in California. Texas, Illinois, and New York sent 55% of the remittances, most of them by electronic transfer, while a small amount is referred by money order and around 15% of the remittances is sent back in cash and goods.  

One third of the remittances end up in cities and villages in Michoacan, Jalisco, and Guanajuato.

Nancy J. Gonzalez / MexicoNow

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